PHARMACIE FONDAUDEGE : revenue, balance sheet and financial ratios

In 2023, PHARMACIE FONDAUDEGE achieves revenue of 1.8 M€. Over the period 2015-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +10.6%. Vs 2022, growth of +15% (1.6 M€ -> 1.8 M€). After deducting consumption (1.3 M€), gross margin stands at 492 k€, i.e. a rate of 27%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 110 k€, representing 6.0% of revenue. Warning negative scissor effect: despite revenue change (+15%), EBITDA varies by -65%, reducing margin by 13.3 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 81 k€, i.e. 4.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 115%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 38%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 8.9 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 4.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 213.29. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 7.3x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 4 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 54 days. Excellent situation: suppliers finance 50 days of the operating cycle (retail model). Inventory turnover is 34 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 58 days of revenue, i.e. 295 k€ to permanently finance. Over 2015-2023, WCR increased by +232%, requiring additional financing.

Based on 220 transactions of similar company sales in 2023, the value of PHARMACIE FONDAUDEGE is estimated at 1 119 241 € (range 718 475€ - 1 437 359€). With an EBITDA of 110 182€, the sector multiple of 10.0x is applied. The price/revenue ratio is 0.69x (in line with sector norms). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.